Palo Alto-Based ooma Lands $16 Million in Third Round

Palo Alto, Calif. -- ooma, the Palo Alto-based developer of a device that gives consumers unlimited telephone service in the U.S. with no monthly fees or contracts, said on Tuesday that it has raised $16 million in its third round of funding. Investors included Draper Fisher Jurvetson, Worldview Technology Partners, The Founders Fund Management, WI Harper Group the Telecommunications Development Fund and Draper Richards. The four-year-old company said that it will use the proceeds to expand retail distribution channels for its home phone system. "This funding is the next step in ooma's continued national expansion," said Andrew Frame, the company's CEO. "Investments will be made in additional services, an expanded support team and a national retail network." ooma's system consists of a hub device connected to a broadband connection and a primary phone. The company also makes an additional device that links the system to additional phone jacks in the home.
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